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Jaime Zobel de Ayala II, chairman and CEO of Ayala Corp. attends a session at the World Economic Forum (WEF) on East Asia in the financial district of Manila on May 22, 2014.
AFP / Ted Aljibe
MANILA, Philippines — Japanese trading giant Mitsubishi Corp. has signed a P18.4-billion investment agreement with Ayala Corp., one of the Philippines' largest conglomerates, to acquire newly issued shares in subsidiary AC Ventures.
The deal, subscribing to 18 million common and redeemable shares, grants Mitsubishi a 50% stake in AC Ventures, reducing Ayala's stake to half.
The move grants Mitsubishi an indirect 6.5% ownership in Globe Fintech Innovations Inc., or Mynt, the parent company of GCash, the country's leading mobile wallet.
The agreement follows Ayala Corp.’s acceptance of Mitsubishi’s offer to invest in its subsidiary to strengthen their “strategic partnership.” The two firms signed a binding term sheet on Oct. 18, 2024.
Prior to the deal, AC Ventures held a 13% stake in Mynt, which operates through two companies: G-Xchange Inc., the operator of GCash; and Fuse Lending, a tech-driven micro-lender.
The firms finalized the deal on March 31, which Ayala announced on Tuesday, April 2, via a disclosure published on the Philippine Stock Exchange EDGE website.
Expansion move. Ayala Corp., the holding company of the Ayala Group, believes that Mitsubishi as Japan’s largest trading firm, will help Mynt and its services expand further overseas.
“We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users,” Ayala Corp. President and CEO Cezar Consing said in an October 2024 statement.
“It’s all about serving better the many Filipinos that depend on GCash and Fuse, and for making a wider variety of financial and other products available to as many Filipinos as possible,” he added.
GCash moving toward IPO
Mynt is a joint venture between Ayala, Globe Telecom, and Alibaba affiliate Ant Group. GCash, its flagship service, is the country’s largest financial app, offering a range of services including cash transfers, bill payments, loans, savings and even stock investments.
In 2024, Mynt secured a new investor, Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking network, to strengthen its e-wallet valuation. This investment boosted GCash’s valuation from $2 billion (~P114.5 billion) to $5 billion (~P286.2 billion).
GCash is currently preparing for its initial public offering (IPO), which would allow the e-wallet firm to be publicly listed, enabling investors to buy and trade its shares in the stock market. With an IPO, it is aiming for a valuation of at least $8 billion (~P457.9 billion).
If the IPO moves forward, Ayala Corp. plans to retain its entire stake in GCash and has no plans to sell down its shares, Consing said in February.
Longstanding partnership. Last year, Ayala Corp. and Mitsubishi Corp., signed a memorandum of understanding to deepen their collaboration and explore new business opportunities in the Philippine to mark the partnership's 50th anniversary.
Since 1974, Ayala and Mitsubishi have collaborated on a broad portfolio of projects, including industrial estates, renewable energy initiatives, water utilities and auto dealerships.
